this is a very profitable and simple strategy. i use the same strategy using 10,20,50 ema on daily and 4hr chart. i use them as dynamic support/resistance.
I don't buy the concept of dynamic support and resistance - but the averages do provide a median price point and a general area to observe price action during mean reversion.
I've found that EMA's and *RANGE* bars work really well (not Renko bars). E.g. 3 Tick range bars on the /ES, long when > 55 EMA, short when under. Model/backtest that puppy.
I’m not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
The good thing with MT5 is that you can put the EMA periods as input parameters and test if those values are the best for the current market. The last point is valid, the lagging makes the signals come in too late, the only leading indicator is price itself, so you should focus on price in relation to the EMA.
It means that price has moved above the previous swing (high) in the market. The definition of an uptrend is higher highs and higher lows. A new high.....is a higher high.
I dont want to mess with your knowledge,but best thing you can do is observing on market,every day so you can get "synchronized" and know what to expect. But it take discipline,to be calm and not be in hurry for investing...and its boring i know
I use moving average only as an indicator of what the trend is. I would never actually trade-off of them. I tried when I first became a trader only to realise that the chart is showing you what the moving average is showing you only the moving average is delayed so you probably missed some value.
@@duelcity8918 do you trade every flip? or do you use like a 150/200 ma and only trade in direction of the trend? ... what about whipsaw during sideways or extreme low volume times?
There is no one size fits all time frame. Some traders use daily signals while others use 1 hour. There is no best or safest period. Best thing to do is test out the time frame you could consistently trade.
@@Netpicks1 I like the 15 minute, then 1 hour, then 4 hour. The day chart hides all the small details. The 4 hour is best for seeing the big picture, 1 hour is best for perspective, 15 mins is best for investor sentiment. I call it the micro psychology of the moment.
@@lambyeeros In my own trading its the M-W-D-60 where the higher timeframes are used for structure. Investment including retirement accounts depend on the Yearly Quarterly and weekly
No disagreement here. The averages are really secondary to the other concepts talked about in the video. They do provide a framework for price and objective determination of trend and ranges.
There are many ways to quantify a pullback. For this strategy, you can look for price to pullback somewhere between the averages. You can draw simple trend lines to highlight pullbacks. You can measure a 30% retrace of swings and look for an entry. You can look for momentum moves in price and ranging at the highs of the moves. It depends on the trader.
It would be helpful if - on your charts, the color/value per EMA is indicated. ie; is 55 red? or yellow or green??? you go thru the examples quickly and it's hard to determine. The upper left of your chart has all three EMA values, but it also needs to indicate which color each value is. Otherwise, very helpful video.
All in all a knowledgeable video about a questionable strategy. I think you nailed it when you said "price action", check out Brooks PA videos. Creating so many rules and special conditions just makes the decision late. It is a little funny that you suggest the viewers to do their own backtesting. I have to ask did you do any backtesting before posting this and if so what were the results?
There is nothing funny about telling viewers to do their own back testing before using a trading strategy. I do not trade this strategy therefore have no desire to do anything but a rudimentary test. Some however may find utility in this strategy and must do their own work. I have tested and don't find much of an edge in reading individual bars. Some price patterns I do like.
Listen every one, every single moving average work, if you understand better, no moving average without understanding tell you where you in and where you out.
The common response from far too many is "indicators don't work". Work? What is their definition of work? You are correct....you have to understand the information you are being given.
@@Netpicks1 Thanks! That's precisely what I'm doing to test this strategy. I found that often times price moves significantly before any EMA crossing happens.
yup back testing always look good , but in real time your mind is almost always thinking it can go either way , better to set your trade and put your stop loss and just walk away , check on it in intervals depending on the chart time and move your stop loss up if indeed, that is if you didn't get stopped out on those first few candles
Depends how you define a day trade. If we are talking lower time frames, moving averages tend to get a bit whippy the lower you go. Plot them on your charts and adjust time frames and you'll see what I mean. However, you can still design a plan around that.
Trading just the crosses is not a great idea. *Keeping it simple:* Wait until all the averages are lined up in the same direction (9 above 21 and both above 55 for buys) and use price structure to place the trades as indicated in the video. If 9 crosses 21 or 21 and 55 and then crosses back to the upside, consider continuation trades/add on to current position.
@@ebukaokereke9014 Is that a question? If it is, yes it would be however there will be times that swing level is far from your entry. Consider using ATR for stops: th-cam.com/video/3RCFmTrEsZI/w-d-xo.html
There is no "should" and it depends on many factors including the volatility of your instrument. Testing is the only way you can come up with anything that may work well.
@@Netpicks1 I was looking at the Hull MA on Nasdaq 5 min chart for Nadex knockouts. With the length at 55 I looks really good. Good on other time frames as well. I never thought of it before but it may be what's needed on day trading Nadex. Only a few losses of 5-6 points or $30 ish. The rest added up to way more in profit. Edit: Hull MA with ATR calculated in the script
Any time frame is fine however keep in mind that the shorter you go, the more whipsaw in the moving averages you will see. That can make trading difficult to say the least.
Truthfully Malik, that is something you have to work out for yourself. There is no magic time frame but there will be one that suits you, your experience, your temperament, your account size
You could make it one. Personally, when looking at moving averages...especially three of them....I'd be more inclined to trade a higher time frame. You can still scalp at higher time frames as scalping is just taking a few bits of the move and getting out.
This is a pretty good video. Nice breakdown of moving avg crossovers. Nothing works 100% of the time but if you combine multiple pieces of data you can draw a clearer picture.Well Done Sir!
Best is a relative term. You have to determine each time frame that fits you. Some can trade faster moving charts while others, like myself, prefer daily and EOD trading.
Are you changing the offsets on the EMAs so that they are moving a bit after or a bit in front of the candles? Feels like you can get other perspectives when to enter then.
That's a great question and I assume you are talking about displaced moving averages. I am not changing the offset however is you look at the Alligator indicator, it does: th-cam.com/video/TmJTh4wPWJg/w-d-xo.html
Any timeframe you choose to use must be tested using your understanding and trading rules. All times frames have good and bad qualities. More confirmation? Wait for too much confluence in variables will have you missing the move. Keep it simple.
You can use it intraday however time frames and "should you", well, those are things you have to test. Anybody that gives you a cookie cutter type of answer, are usually full of it.
@@jayacandran I use a crossover of the 4ema 9 ema and 20 ema in either direction once the lines separate after the consolidation period. I then use a close under or over the 4 ema as my trailing stop. You end up catching 90% of the move! I use daily charts to swing trade this setup, my one and only GOAT setup!
What do you think of using moving averages in your trading?
As long as there's a trend you can make it work
this is a very profitable and simple strategy. i use the same strategy using 10,20,50 ema on daily and 4hr chart. i use them as dynamic support/resistance.
Actually, I think averages are great to objectively determine a ranging market which can assist a trader in any type of breakout strategy.
I don't buy the concept of dynamic support and resistance - but the averages do provide a median price point and a general area to observe price action during mean reversion.
I've found that EMA's and *RANGE* bars work really well (not Renko bars). E.g. 3 Tick range bars on the /ES, long when > 55 EMA, short when under. Model/backtest that puppy.
Larry Williams was a proponent of 9 and 21 EMA, and incorporated the closing price into a strategy
Learned all 3 ema on charts before. Later I found this video confirms I was in right direction. 🤗
That's awesome!
Awesome video!!! I use those three moving averages in my trading !! I liked and subscribed to your channel !! :D keep them good videos coming!!
Thanks for the sub!
I’m not kidding when I say that the market crash and high inflation have me really stressed out and worried about retirement. I've been in the red for a while now and although people say these crisis has it perks, I'm losing my mind but I get it Investing is a long-term game, so focus on the long run.
Best of the Best video about Moving Average
Thanks for that.
Another great tutorial. Thank you so much for taking time out of your day to make it. It is much appreciated.🙂
Glad it was helpful!
Love the ideas here, I say just use 8/21/55 though, as 8 is in the Fibonacci sequence, not 9.
Yes, it should not make any difference and if it did, we could say it is not a robust strategy to hang your hat on.
As a beginner trader, Thank you! I have learned so much from this informative video.
Glad it was helpful!
When in doubt, pull out.
Good video! I use the 3 ema strategy with the 9, 20, & 50 which is very similar to yours.
I use Ema 10, 20, 50 crossover especially in 5 min timeframe to take trade in Gold.
how's that working out for you?
I use SMA for understanding the price trend. Shifting to using EMA now. Thanks for the video.
You're welcome but understand that SMA and EMA should not be vastly different in terms of results.
Very Thanks. 3EMAs sometimes are crossing.... The "big winner".💖💖🌺🌺🌹🌹🌸🌸💝💝💟💟🎀🎀
So I’ve back tested this and my god it’s golden with my indicators (MacD , BBand, Volume profile, TTM squeeze )
Jay - which platform you were using to back test? @Jay the Trader
The good thing with MT5 is that you can put the EMA periods as input parameters and test if those values are the best for the current market. The last point is valid, the lagging makes the signals come in too late, the only leading indicator is price itself, so you should focus on price in relation to the EMA.
what does it mean for the swing high to be taken out?
It means that price has moved above the previous swing (high) in the market. The definition of an uptrend is higher highs and higher lows. A new high.....is a higher high.
Powerfull entry technique, Much aprecciated !!
was already finding good results trading the 8/21 cross, adding the 55 helped save some potential losses though
how would you use the 55 ema with the 8 & 21
@@gbankz7935 use it the same as you would with the 9, 21, 55. It won’t make that much of a difference.
@@gbankz7935 What Hawkeye said. Also, 8, 21, and 55 are Fibonacci numbers if you like using them. 9 isn't.
@@hawkeyehowardinvesting3530 when do you enter and exit with that strategy?
This video lesson is excellent. Well done. Thank you
I have watched this at least 10 times. Its real eye opener thank you.
Have you tried it?
While learning to trade and invest in forex market may seem intimidating. it is actually more simple than you think
Wonderful video. Need to watch it couple of times
agree..3 ema crosing is one of the best tools., .. i use the advanced 3 ema indicator with arrows.
Thank you for the video.
i use 12hma,26 hma rsi9 and bb without lines
I love using the 95 and 125 HMA myself. And the 200 SMA for the direction.
How do you use them Joe?
Good Strategy. Thanks.
You're welcome
Nice & clear, thanks
You're welcome!
amazing vid keep up the work
Thanks!
I dont want to mess with your knowledge,but best thing you can do is observing on market,every day so you can get "synchronized" and know what to expect.
But it take discipline,to be calm and not be in hurry for investing...and its boring i know
Nice. Very simple and easy to comprehend. Thanks!
Glad it was helpful!
Thank you for the information.
Our pleasure!
Great video
Thanks!
I use moving average only as an indicator of what the trend is. I would never actually trade-off of them. I tried when I first became a trader only to realise that the chart is showing you what the moving average is showing you only the moving average is delayed so you probably missed some value.
it's a lagging indicator for sure . . But I've been using the 3/8/20 exclusivley for years now! Almost never fails
@@duelcity8918 do you trade every flip? or do you use like a 150/200 ma and only trade in direction of the trend? ... what about whipsaw during sideways or extreme low volume times?
@@duelcity8918 are these EMA's, and which time frame sir ?
Making Money with Technical Charts. Chart is God for Me.
Precious video for trading. Highly recommended.
Beautiful lessons for trading here
Thank You That Was Excellent
Hope that strategy is working out well
You have just nailed it. Making trading become easier.
Perfect. Thank you.
You're welcome!
Excellent quality top stuff
Much appreciated
what time frame you use for your EMA ? 1h 4 h 1D ? what is the best and safest period?
There is no one size fits all time frame. Some traders use daily signals while others use 1 hour. There is no best or safest period. Best thing to do is test out the time frame you could consistently trade.
@@Netpicks1 I like the 15 minute, then 1 hour, then 4 hour. The day chart hides all the small details. The 4 hour is best for seeing the big picture, 1 hour is best for perspective, 15 mins is best for investor sentiment. I call it the micro psychology of the moment.
@@lambyeeros In my own trading its the M-W-D-60 where the higher timeframes are used for structure. Investment including retirement accounts depend on the Yearly Quarterly and weekly
We use 10, 20, and 50 ema's since their equivalents are 1/16, 1/8, and 1/4 of a year
I guess the number is just arbitrary and subjective to the trader
No disagreement here. The averages are really secondary to the other concepts talked about in the video. They do provide a framework for price and objective determination of trend and ranges.
It does. And every traders has different views on how the market goes.
@@Netpicks1 Please, make a video for tradding in a range line !
Bro i use 10,20 but how to using both three? 10,20,50?
I need to improve checking SH SLs before entering trades after crossovers.
Excellent video btw.
Thanks John. Seeing the resumption of the trend via structure is pretty important.
what do you mean by swing high swing low areas?
Markets make higher highs and lows in uptrends. Lower highs and low in downtrends. The turning point of each market swing...is the high or low area.
Good job, Thank you sir. Plz explain about pullback trade. How to identify that zone? In day trading???
There are many ways to quantify a pullback. For this strategy, you can look for price to pullback somewhere between the averages. You can draw simple trend lines to highlight pullbacks. You can measure a 30% retrace of swings and look for an entry. You can look for momentum moves in price and ranging at the highs of the moves. It depends on the trader.
what chart period you using 1 week 3 months or 1 year ?
The video shows 60 minute, four hour...
It would be helpful if - on your charts, the color/value per EMA is indicated. ie; is 55 red? or yellow or green??? you go thru the examples quickly and it's hard to determine. The upper left of your chart has all three EMA values, but it also needs to indicate which color each value is.
Otherwise, very helpful video.
Thanks Keith.
All in all a knowledgeable video about a questionable strategy. I think you nailed it when you said "price action", check out Brooks PA videos. Creating so many rules and special conditions just makes the decision late. It is a little funny that you suggest the viewers to do their own backtesting. I have to ask did you do any backtesting before posting this and if so what were the results?
There is nothing funny about telling viewers to do their own back testing before using a trading strategy. I do not trade this strategy therefore have no desire to do anything but a rudimentary test. Some however may find utility in this strategy and must do their own work. I have tested and don't find much of an edge in reading individual bars. Some price patterns I do like.
What's the time frame for using this strategy?
It doesn't really matter. Just know that lower time frames can and will produce more erratic movement of the indicators.
Could u please mention the 9,21,55 EMA's in Color's?
9 - Redish
21 - Blue
55 - Yellow
Listen every one, every single moving average work, if you understand better, no moving average without understanding tell you where you in and where you out.
The common response from far too many is "indicators don't work". Work? What is their definition of work? You are correct....you have to understand the information you are being given.
Good stuff in here. This was a nice valuable post.
Thanks 🎉
Great lesson, thanks!
Would you use the same values for trading Crypto?
I wouldn't waste too much time adjusting values. Far too many combinations to work through. Adjusting time frames would be an easier adjustment.
@@Netpicks1 Thanks!
That's precisely what I'm doing to test this strategy. I found that often times price moves significantly before any EMA crossing happens.
Hi, when setting up EMAs it must be done on price change, each tick or bar closing. Thanks
People generally use closed for simplicity
@@Netpicks1 thanks
Is 8 20 50 ema the same as 9 21 55 ema strategy?
With such slight changes in the settings, the only difference would be how you manage trades or perhaps the entry/exit strategy
You speak the truth..especially about considering other factors in your trade, which is the hardest part to calculate (i find) in real time.
yup back testing always look good , but in real time your mind is almost always thinking it can go either way , better to set your trade and put your stop loss and just walk away , check on it in intervals depending on the chart time and move your stop loss up if indeed, that is if you didn't get stopped out on those first few candles
Can you day trade with this setup?
Depends how you define a day trade. If we are talking lower time frames, moving averages tend to get a bit whippy the lower you go. Plot them on your charts and adjust time frames and you'll see what I mean. However, you can still design a plan around that.
Hiii pls I really have a question? Is it only when the 21 crosses 55 you go for a buy and when the 9 crosses the 21 you go for a sell??
Trading just the crosses is not a great idea.
*Keeping it simple:* Wait until all the averages are lined up in the same direction (9 above 21 and both above 55 for buys) and use price structure to place the trades as indicated in the video. If 9 crosses 21 or 21 and 55 and then crosses back to the upside, consider continuation trades/add on to current position.
@@Netpicks1 then the stop loss is the previous swing low for a buy
@@ebukaokereke9014 Is that a question? If it is, yes it would be however there will be times that swing level is far from your entry. Consider using ATR for stops: th-cam.com/video/3RCFmTrEsZI/w-d-xo.html
Which EMA's should I use when I am using 10 min candlesticks?
There is no "should" and it depends on many factors including the volatility of your instrument. Testing is the only way you can come up with anything that may work well.
What about using Hull MA since it reacts quicker?
Sure...although quicker may not always mean better.
@@Netpicks1
Thats what she said-had to say it 🤓
@Robert Rose ** "She" is where I got the answer from.
@@Netpicks1
I was looking at the Hull MA on Nasdaq 5 min chart for Nadex knockouts. With the length at 55 I looks really good. Good on other time frames as well. I never thought of it before but it may be what's needed on day trading Nadex. Only a few losses of 5-6 points or $30 ish. The rest added up to way more in profit.
Edit: Hull MA with ATR calculated in the script
Can I use it on 1H chat
Any time frame is fine however keep in mind that the shorter you go, the more whipsaw in the moving averages you will see. That can make trading difficult to say the least.
What color is what line. how am I supposed to know
Look at the order of the averages in an uptrend. When they are smoothly moving up, the slowest will be the bottom one.
Love how easy to understand this is
Love from INDIA
I could not make out what each color represent in terms of the EMA lines, is yellow - 55 green-21 and red-9 day respectively?
That would be correct
is this for forex only?
No. You can try it out on any liquid instrument.
Hi, on a chart, the 9-21-50 EMA (on any timeframe) is almost identical to the William Alligator indicator with std settings, very very close.
The big difference is Alligator uses displaced moving averages: th-cam.com/video/TmJTh4wPWJg/w-d-xo.html
Dear sir while using 3ema so what time period on chart we should follow 5-minutes, 10, 15 or 1 hour?
Truthfully Malik, that is something you have to work out for yourself. There is no magic time frame but there will be one that suits you, your experience, your temperament, your account size
@@Netpicks1
Yes Correct
Its your strategy
Thank you, we have been backtesting your strategy it will improve our timing in/out immensely.
sir .... this stretagey which time frame using in intraday trade
This is something you will have to work out in your testing.
Thanks for the video, can this be used on nasdaq 100?
I have not tested it on that. You'll want to test instruments and time frames as you build your trading plan for it.
Thanks for sharing your strategy. This video is helpful.
Can we use this 9, 21, and 50 ema on any timeframe ?
You could but understand the lower time frames may have more erratic crosses of the averages.
Thank you for the knowledge I will definitely test out your strategy👍🏾👍🏾
Is this a scalping strategy?
You could make it one. Personally, when looking at moving averages...especially three of them....I'd be more inclined to trade a higher time frame. You can still scalp at higher time frames as scalping is just taking a few bits of the move and getting out.
Great video
This is a pretty good video. Nice breakdown of moving avg crossovers. Nothing works 100% of the time but if you combine multiple pieces of data you can draw a clearer picture.Well Done Sir!
Thanks for that!
Informative and nice video
What timeframe do this strategy work best
Best is a relative term. You have to determine each time frame that fits you. Some can trade faster moving charts while others, like myself, prefer daily and EOD trading.
This strategy is for intraday or swing trade ?
thanks guys, this is so useful !
Glad it was helpful!
Are you changing the offsets on the EMAs so that they are moving a bit after or a bit in front of the candles? Feels like you can get other perspectives when to enter then.
That's a great question and I assume you are talking about displaced moving averages. I am not changing the offset however is you look at the Alligator indicator, it does:
th-cam.com/video/TmJTh4wPWJg/w-d-xo.html
Nice explanation... on Which timeframe good for intraday or scalping and can we use any other indicator for more confirmation??
Any timeframe you choose to use must be tested using your understanding and trading rules. All times frames have good and bad qualities. More confirmation? Wait for too much confluence in variables will have you missing the move. Keep it simple.
Great video. very informative and detailed on EMA. Thanks helped a lot.
Glad it was helpful!
Amazing information. Thank you
Our pleasure!
Hey Bro great strategy is very easy use EMA always
Thank you by post video hugs!!!
Yup excellent video must know strategy.
Good content and technical analysis keep up the good work
Sir can we use this for option trading
You would certainly want to test it before implementing it.
Shree Harsha S of course you can
AWESOME video,really like the power points
This strategy soo clutch im trying to combine this with slow stochastic. Of course with some basic S/R levels, has anyone tried this?
How did it go after 7 months? curious
Really great..............thanks ..............a lot.............
You are most welcome
Please tell the time frame
Test on any time frame you wish to trade. I personally use daily charts for my trading.
Very simple and very understandable, without any platforms
Evergreen.... can be use anytime and anywhere.. thanks 👍🙏
Yes 😊
Awesome video …. much appreciated.
Glad it was helpful!
Sir
Can i use it for intraday?.which time frame should i use?
You can use it intraday however time frames and "should you", well, those are things you have to test. Anybody that gives you a cookie cutter type of answer, are usually full of it.
@@Netpicks1
Sir
How to fix stop loss?
Try to use an ATR for stop loss: th-cam.com/video/VUU4gh7lq-o/w-d-xo.html
@@jayacandran I use a crossover of the 4ema 9 ema and 20 ema in either direction once the lines separate after the consolidation period. I then use a close under or over the 4 ema as my trailing stop. You end up catching 90% of the move! I use daily charts to swing trade this setup, my one and only GOAT setup!
@@adriandmd what tf do u use?
what if I use the 6,14,26 EMA ... do you think it makes a substantial difference?
Not really. You will get the 26 crossings quicker so you may face whipsaws as price whips around.
Not much. But you’ll probably want to test them both out so you can see the difference.
You nailed it .... thank you